Seconding employees to a charity

There are special rules in place when a limited company gives to a charity. This can include Corporation Tax relief for certain donations made to registered charities or community amateur sports club (CASC) as well as capital allowances for giving away equipment that has been used by your company.

There are also special rules if your company temporarily transfers an employee to work for a charity. This is known as a ‘secondment’. If this happens, the company can deduct any costs as normal business expenses.

The company must continue to pay the employee and run Pay As You Earn (PAYE) on their salary. The company can set the costs (including wages and business expenses) against taxable profits as if the employee was still working for the company (and not seconded to the charity).

The same rules apply for employees that volunteer for a charity during working hours.

Planning note

The costs of employees on secondment or volunteering at a community amateur sports club (CASC) cannot be claimed in this way.

Posted in Employment & Payroll

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login: Onvio

Forgot Password?

Latest News

X-factor Charity single

The Government will waive the VAT equivalent on the sales of this year’s X Factor Celebrity Christmas Charity single. All …
Read More

When National Insurance Credits can be claimed

National Insurance credits can help qualifying applicants to fill gaps in their National Insurance record. This can assist taxpayers to …
Read More

Inheritance Tax Agricultural Property Relief

There are a number of reliefs available that can reduce liability to IHT. The most relevant for farmers is the …
Read More